Locate the Treasury bond in Figure 8.4 maturing in November 2028. What is its coupon rate? What

Question:

Locate the Treasury bond in Figure 8.4 maturing in November 2028. What is its coupon rate? What is its bid price? What was the previous day’s asked price? Assume a par value of $10,000.

Figure 8.4

Figure 8.4 Sample Wall Street Journal U.S. Treasury Bond Prices Asked Maturity Coupon Bid Asked Chg Yld 11/15/2018 3.75 102.7266 102.7422 -0.0313 1.342 3/31/2019 1.625 100.3828 100.3984 -0.0078 1.36 3/15/2020 1.625 100.3516 100.3672 -0.0078 1.474 10/31/2021 1.25 98.0469 98.0625 -0.0313 1.74 2/15/2023 7.125 126.8516 126.8672 -0.0625 1.872 5/15/2024 2.5 102.7969

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...

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